Latest / Results Driven / Episode 184: Getting the Contract Signed Is the EASY Part

Transcript

Episode 184: Getting the Contract Signed Is the EASY Part · Results Driven

• 0:00
  SPEAKER_00: Audit it from the seller's perspective.
• 0:02
  SPEAKER_00: From the moment they sign your agreement until the moment they close.
• 0:05
  SPEAKER_00: What do they think is supposed to happen next?
• 0:08
  SPEAKER_00: Who tells them?
• 0:09
  SPEAKER_00: When do they tell them?
• 0:11
  SPEAKER_00: What gets set in writing?
• 0:13
  SPEAKER_00: What happens if somebody else needs access?
• 0:15
  SPEAKER_00: Who owns the communication?
• 0:16
  SPEAKER_00: When are they actually clear to start making their next move?
• 0:20
  SPEAKER_00: If the answer to those questions depends on whichever employee happens to be managing the file that day, then you do not really have a process yet.
• 0:33
  SPEAKER_00: Are you a driven real estate investor tired of inconsistent deal flow and ready to scale your business?
• 0:39
  SPEAKER_00: I'm Tiffany High and I'm Josh Hyde.
• 0:41
  SPEAKER_00: And this is the Results Driven Podcast, where we share proven strategies to build systems that faster sales, grow your team, and create a self-sustaining business with predictable income.
• 0:52
  SPEAKER_00: Whether you're a one-person operation or building a team, our mission is to give you the tools, support, and mindset shifts you need to succeed.
• 1:01
  SPEAKER_00: Let's dive in.
• 1:06
  SPEAKER_00: Most investors have a process for moving a property from contract to closing.
• 1:11
  SPEAKER_00: You send the contract to title, you get into the property, you do your due diligence, you figure out your exit strategy, and eventually you close the deal.
• 1:17
  SPEAKER_00: That part's not complicated.
• 1:19
  SPEAKER_00: The part people do not think about enough is what the seller is experiencing during all of that.
• 1:24
  SPEAKER_00: Because something that feels completely normal to us can feel really abnormal to the seller if nobody prepared them for it.
• 1:30
  SPEAKER_00: You send somebody out to inspect the house, and now they're wondering why you need an inspection if you said you were buying it as is.
• 1:36
  SPEAKER_00: A second person needs access and suddenly they're thinking, wait, I thought you were the buyer.
• 1:40
  SPEAKER_00: Title calls them and they're wondering who gave this random company their phone number, right?
• 1:45
  SPEAKER_00: The closer disappears, somebody named Britney calls the next morning, and now they're thinking, who is this person?
• 1:51
  SPEAKER_00: None of those things are really a problem.
• 1:54
  SPEAKER_00: They become a problem when the seller was not expecting them, though.
• 1:58
  SPEAKER_00: And over the years, that is really how we build our process.
• 2:00
  SPEAKER_00: Something created confusion once, we fixed the language around it, and then we build it into the system so that the team did not have to keep solving the same problem over and over again.
• 2:10
  SPEAKER_00: So I want to walk you through exactly how we manage the seller from the moment they're about to sign the agreement all the way to closing.
• 2:17
  SPEAKER_00: And honestly, a lot of those systems we use today came from all those mistakes.
• 2:21
  SPEAKER_00: We had the seller who got nervous because nobody else needed to walk the property.
• 2:25
  SPEAKER_00: We had sellers who had no idea why title was calling.
• 2:28
  SPEAKER_00: We've had sellers who thought signing the contract meant that they should immediately go sign a lease somewhere else.
• 2:33
  SPEAKER_00: We had communication gaps between acquisitions and transactions.
• 2:36
  SPEAKER_00: So instead of treating all those things like random buyers every time they happen, we started building them into a process.
• 2:42
  SPEAKER_00: That is what I want to show you today.
• 2:44
  SPEAKER_00: Not just what happens operationally after the contract is signed, but how do we make the seller feel taken care of through the process?
• 2:51
  SPEAKER_00: Because at the end of the day, the goal is not just getting contracts signed, it's building a company that can move those contracts all the way to closing without you personally having to step into every single conversation.
• 3:04
  SPEAKER_00: All right, so our team does everything virtual.
• 3:07
  SPEAKER_00: So some of you guys go to in-person appointments, some do phone sales, we do phone sales.
• 3:11
  SPEAKER_00: So when we go to actually sign the agreement, we have someone on the phone setting expectations, going through a doc you sign with them while they're on the other end of the phone.
• 3:20
  SPEAKER_00: And what happened years and years ago, but as we were building a team, is we had to get really good on that transition communication between the closer and the transaction coordinator so that the seller didn't freak out in between.
• 3:33
  SPEAKER_00: Okay.
• 3:34
  SPEAKER_00: And so what we do is as they're going over the purchase agreement and they're doing their final signatures, the closer has a script, by the way, but I'm gonna freelance it right now.
• 3:43
  SPEAKER_00: And they want to make sure that they understand who's calling them next, what's happening next, and by when.
• 3:49
  SPEAKER_00: Okay, so that they don't freak out and feel lost.
• 3:52
  SPEAKER_00: So our transaction coordinator's name is Brittany.
• 3:54
  SPEAKER_00: So let's just say I'm the closer on the phone and I will say, hey, next steps are Brittany, our transaction coordinator, is now gonna be your point of contact from now until the property closes.
• 4:05
  SPEAKER_00: Now I'm still here if you have questions, but ultimately she'll be holding your hand through the closing process.
• 4:10
  SPEAKER_00: She will be reaching out to you within the next 24 hours.
• 4:14
  SPEAKER_00: Let me ask you, what time of day do you prefer that she calls you?
• 4:17
  SPEAKER_00: And do you prefer that she texts you first or just go ahead and call you?
• 4:21
  SPEAKER_00: What I can do is also text you her phone number.
• 4:24
  SPEAKER_00: You can save it in her phone as Britney with Heels Homes.
• 4:27
  SPEAKER_00: So that way when she does call, you know that it's her calling and you don't ignore the call.
• 4:31
  SPEAKER_00: Now, all those things are important because there is a box inside of our CRM and we have a checklist laminated actually on their desk.
• 4:39
  SPEAKER_00: And they have to make sure that they check every box before they send it to the transaction coordinator because if not, there'll be communication gaps.
• 4:46
  SPEAKER_00: So things like um, what time of the day do they like to be contacted?
• 4:50
  SPEAKER_00: Do they work?
• 4:50
  SPEAKER_00: Is there a lockbox?
• 4:51
  SPEAKER_00: Is it vacant, owner occupied?
• 4:53
  SPEAKER_00: If there's a tenant, there's a whole list of questions they have to ask in order to then ensure that they pass that communication on to the transaction coordinator, et cetera.
• 5:02
  SPEAKER_00: Okay.
• 5:03
  SPEAKER_00: So now they know clearly Britney's calling in the next 24 hours.
• 5:07
  SPEAKER_00: Maybe they asked her to text first, then call, et cetera.
• 5:09
  SPEAKER_00: Okay.
• 5:10
  SPEAKER_00: Now what we have is what we call a TC seller intro script.
• 5:14
  SPEAKER_00: In that script, I feel like a lot of investors in the industry get a bunch of objections, and the script is important to objection block them before they happen.
• 5:23
  SPEAKER_00: So I'm just gonna role play with you and pretend I'm the transaction coordinator.
• 5:27
  SPEAKER_00: So, what are some common things that sellers object?
• 5:30
  SPEAKER_00: One is why do you have to inspect my property when I'm buying as is?
• 5:34
  SPEAKER_00: And then if you're a wholesaler, my guess is you try to get into the property more than once, especially if you have to have buyers you walk through.
• 5:41
  SPEAKER_00: And then the seller freaks out because they're like, why do you have to get my property more than once?
• 5:45
  SPEAKER_00: Okay.
• 5:46
  SPEAKER_00: And then also there tends to be communication gaps with title companies.
• 5:49
  SPEAKER_00: And so that might create some friction as well.
• 5:52
  SPEAKER_00: Those are probably some of the biggest objections that we see.
• 5:55
  SPEAKER_00: So what I want to do is walk you through the script.
• 5:58
  SPEAKER_00: Hi, I'm Tiffany with Heels Holmes.
• 5:59
  SPEAKER_00: I'm the transaction coordinator, and I'm here to hold your hand from now until closing.
• 6:05
  SPEAKER_00: And what I just did, sir, is I just emailed you a packet that you can reference after our call today, which by the way, before I go into all this, I'm building rapport.
• 6:13
  SPEAKER_00: How are you today?
• 6:13
  SPEAKER_00: Da-da-da.
• 6:14
  SPEAKER_00: Hey, I just emailed you a packet, and what's in that packet is my contact information, the title company's information, then you'll explain who it is, da-da-da.
• 6:22
  SPEAKER_00: And how the inspection process works and how the closing process works.
• 6:26
  SPEAKER_00: In the meantime, I'm just sending you that so that if you have any questions, you can keep it saved, always have our information so you know who to reach out to.
• 6:34
  SPEAKER_00: In the meantime, the first thing that we have to do is schedule an inspection.
• 6:38
  SPEAKER_00: Now, if the seller says, I don't understand still why you have to do an inspection, you said you were buying as is.
• 6:43
  SPEAKER_00: We always tell this story.
• 6:45
  SPEAKER_00: And by the way, this is a true story and why we do inspections.
• 6:49
  SPEAKER_00: So years ago, when we first got into the game, we had a seller who told us that it was in living condition.
• 6:56
  SPEAKER_00: He'd been living there for years, da-da-da.
• 6:58
  SPEAKER_00: And I actually forget the price.
• 7:00
  SPEAKER_00: I think it was like around$40,000 that he wanted.
• 7:02
  SPEAKER_00: And the ARV of this property was like, I don't remember, but three, four hundred thousand at least.
• 7:07
  SPEAKER_00: So we're like, oh, this is a deal.
• 7:09
  SPEAKER_00: We don't even need to go see the property.
• 7:10
  SPEAKER_00: Okay.
• 7:11
  SPEAKER_00: Because if it has walls and it's got water working, whatever, like we can flip this house and make a lot of money.
• 7:16
  SPEAKER_00: So we didn't go see the property.
• 7:18
  SPEAKER_00: Again, this was way before we grew a team years and years and years ago.
• 7:22
  SPEAKER_00: And so we get this property, we walk the property and it's gutted to the studs, no plumbing, no electric, and it's got dirt floors.
• 7:30
  SPEAKER_00: Okay.
• 7:30
  SPEAKER_00: And so now the transaction coordinator, if the seller ever asks that, tells that story.
• 7:36
  SPEAKER_00: Hey, sir, I completely understand why you would ask that.
• 7:40
  SPEAKER_00: I would ask the same thing.
• 7:41
  SPEAKER_00: Unfortunately, we had a situation happen years ago, and this is why it's a company policy, that we, and I explain it.
• 7:49
  SPEAKER_00: The seller had told us it was living condition, and he was living there for years.
• 7:53
  SPEAKER_00: Well, we come to find out because we didn't do the walkthrough inspection, it actually had dirt floors, no plumbing, no electric, no walls.
• 8:00
  SPEAKER_00: But he was living there.
• 8:01
  SPEAKER_00: So to him, it was living condition.
• 8:03
  SPEAKER_00: To us, it wasn't.
• 8:04
  SPEAKER_00: And so now, ever since that story, our company has a policy where we still have to inspect the property and ensure it's in the condition that you stated.
• 8:12
  SPEAKER_00: Again, I want to reiterate that we are not gonna ask for any changes to the property.
• 8:16
  SPEAKER_00: We are buying it as is, assuming it's in the condition that we've already discussed with you.
• 8:20
  SPEAKER_00: And they're normally like, okay, that makes sense, and they'll laugh or whatever about that story.
• 8:25
  SPEAKER_00: Now, I want to walk you through the inspection process.
• 8:28
  SPEAKER_00: So, first, we have an inspector on our team who is also licensed, and then we have a project manager on our team, and they both come out to walk the property for about 30 minutes.
• 8:38
  SPEAKER_00: Now, I'm also happy to share that report with you after if you would like to see it, because it is a licensed report.
• 8:44
  SPEAKER_00: No different than maybe what you would get if you were to list the property.
• 8:47
  SPEAKER_00: So that way you at least know what's going on with your property.
• 8:50
  SPEAKER_00: From there, they will bring that back to our office, and we have to do a second walkthrough.
• 8:55
  SPEAKER_00: Now, before you ask, you're probably thinking, why did we do a second walkthrough then?
• 8:59
  SPEAKER_00: Good question in advance.
• 9:01
  SPEAKER_00: Unfortunately, our general contractor who has to do the final estimate of any work that needs done for us and verifying condition, he and along with the rest of the industry cannot find laborers who want to work for a living anymore.
• 9:14
  SPEAKER_00: And so they now require that they have upfront work done before they do a final walkthrough.
• 9:19
  SPEAKER_00: Now, they're in and out, which is the whole intent of why we do initial work on the first walkthrough.
• 9:24
  SPEAKER_00: So they, when they come, they're like walking through and they're out of the property.
• 9:27
  SPEAKER_00: Now, when they're there, they are going to verify like, do you have five shingles, layers of shingles on the roof?
• 9:32
  SPEAKER_00: Is there a three-inch crack where like a basement doctor or roofing contractor or a septic company or something along those means would have to give a final quote.
• 9:40
  SPEAKER_00: But that's uncommon.
• 9:41
  SPEAKER_00: And if it is, we'll make sure we explain to you what's going on, but not to say that would ever happen to your property.
• 9:47
  SPEAKER_00: Now, the seller, what are you doing?
• 9:49
  SPEAKER_00: You're setting very clear expectations that you are going to get into this property two to three times.
• 9:54
  SPEAKER_00: If you're a wholesaler, this sets you up for success because you might have to get your report and then get buyers through on a second walkthrough.
• 10:02
  SPEAKER_00: And then you leave yourself a, okay, just in case I need a third walkthrough.
• 10:06
  SPEAKER_00: If you're a flipper, it also allows us to get any subcontractors through or anything that we need for final look throughs.
• 10:13
  SPEAKER_00: Okay.
• 10:14
  SPEAKER_00: So I'm not going to get into all of our in virtual inspection process today.
• 10:18
  SPEAKER_00: That's we've done another video on that because we use license inspectors.
• 10:21
  SPEAKER_00: We also send our project manager out to get a scope of work.
• 10:24
  SPEAKER_00: Guys, everything we do in the company from A to Z is virtual.
• 10:27
  SPEAKER_00: It is systemized so that we aren't wearing all the hats, right?
• 10:30
  SPEAKER_00: So, like if you're watching this and you still go to inspections or you still create your own scope of works or anything like that, guys, we can't grow or be consistent or focus on money if you're still doing those things.
• 10:41
  SPEAKER_00: Okay.
• 10:42
  SPEAKER_00: So we've now set very clear expectations with the seller.
• 10:46
  SPEAKER_00: We've also sent them a professional branded packet by email so that they know, like, and trust us.
• 10:52
  SPEAKER_00: By the way, our acquisitions team at the front end of every call also sends a branded packet on the acquisition side.
• 11:00
  SPEAKER_00: So they're already experiencing this level of professionalism that now we rarely ever, ever run into what I would call trust issues.
• 11:09
  SPEAKER_00: You know, back in the day when I first got started in the game, you know, a seller might get cold feet and try to back out or like last minute be like, wait, is this a scam?
• 11:17
  SPEAKER_00: We don't get that stuff anymore because we're very professional about what materials we give them and how they're branded and all that.
• 11:24
  SPEAKER_00: Now, another thing that's really important on this call is we want to figure out are they buying?
• 11:29
  SPEAKER_00: Are they leasing?
• 11:29
  SPEAKER_00: Like, what are they doing next?
• 11:31
  SPEAKER_00: Because there's a lot of really unethical investors out there that let them do their thing and then it could ruin someone's life.
• 11:38
  SPEAKER_00: And so if we find out, oh, they're gonna go rent next, we wanna ask some questions.
• 11:42
  SPEAKER_00: Hey, please do not go sign a lease or put a deposit down until we have passed the inspection.
• 11:47
  SPEAKER_00: We have to make sure that's passed.
• 11:48
  SPEAKER_00: And I wouldn't want you to get caught up in a bad situation.
• 11:51
  SPEAKER_00: In addition, do you need help, right?
• 11:52
  SPEAKER_00: Like a lot of sellers need help moving, whether they physically don't have the money to move, they don't know where to move, they don't know how to apply, et cetera.
• 12:00
  SPEAKER_00: So, what we've done over the years is we've built relationships with property managers all throughout our cities.
• 12:05
  SPEAKER_00: So, what we do in the beginning, we don't need this as much anymore, but we had a virtual assistant, Google, and call all the property managers, brokers, landlords in the city.
• 12:15
  SPEAKER_00: And we built an email list inside of our platform with a tag that says they're a property manager.
• 12:21
  SPEAKER_00: So when somebody needs a rental, we just say, Hey, if you would like, I'll send it out to our network and help you find a rental.
• 12:27
  SPEAKER_00: I need to know your budget, what you're looking for, what side of town, what do you think your credit score is, et cetera.
• 12:32
  SPEAKER_00: And then from there, we then send that information out.
• 12:35
  SPEAKER_00: Hey, everyone, I have Billy here.
• 12:37
  SPEAKER_00: Here's what he thinks his credit score is, here's the square feet, the bedrooms, the town or the area, the budget.
• 12:43
  SPEAKER_00: Do you have anything coming up open by this date?
• 12:46
  SPEAKER_00: Okay.
• 12:46
  SPEAKER_00: Now we're connecting the landlords with the sellers so that the process can get done faster.
• 12:51
  SPEAKER_00: So closing is smoother.
• 12:53
  SPEAKER_00: Okay.
• 12:54
  SPEAKER_00: Now, the intent of this video is to really show you how do we set the call-up for success from the closer to the transaction coordinator.
• 13:01
  SPEAKER_00: And then also with the transaction coordinator, making sure that the seller feels comfortable that they have a point of contact from now until closing so they don't freak out like this is a scam.
• 13:12
  SPEAKER_00: Okay.
• 13:13
  SPEAKER_00: So again, we want to make sure that they know what number they can call or text.
• 13:17
  SPEAKER_00: They have the packet that's professionally built and explains the process.
• 13:21
  SPEAKER_00: We then schedule the first inspection.
• 13:24
  SPEAKER_00: We ask them how they like to be communicated with.
• 13:26
  SPEAKER_00: Hey, although my process is, we follow up when something's needed, which is typically every three to five days or so, or once a week.
• 13:34
  SPEAKER_00: Would you like me to follow up with you more regularly?
• 13:37
  SPEAKER_00: Would you like me to text you and just check in?
• 13:40
  SPEAKER_00: We want them to define how they want to be communicated with because then it'll make them feel more comfortable in the process.
• 13:46
  SPEAKER_00: They're feeling heard, and we're going by their rules, not necessarily ours.
• 13:49
  SPEAKER_00: Okay.
• 13:50
  SPEAKER_00: And we call that our TC seller intro script.
• 13:53
  SPEAKER_00: And that one thing will set all of the rest of the process up for success as long as you clearly communicate and set clear expectations on all the moving steps before you press the go button.
• 14:04
  SPEAKER_00: If you're already doing deals, here's what I would challenge you to do: go audit your process.
• 14:09
  SPEAKER_00: And I don't mean, do we send the contract a title?
• 14:12
  SPEAKER_00: Do we schedule the inspection?
• 14:13
  SPEAKER_00: I'm assuming you already know how to do those things.
• 14:16
  SPEAKER_00: Audit it from the seller's perspective.
• 14:18
  SPEAKER_00: From the moment they sign your agreement until the moment they close.
• 14:21
  SPEAKER_00: What do they think is supposed to happen next?
• 14:24
  SPEAKER_00: Who tells them?
• 14:25
  SPEAKER_00: When do they tell them?
• 14:27
  SPEAKER_00: What gets set in writing?
• 14:29
  SPEAKER_00: What happens if somebody else needs access?
• 14:31
  SPEAKER_00: Who owns the communication?
• 14:32
  SPEAKER_00: When are they actually clear to start making their next move?
• 14:36
  SPEAKER_00: If the answer to those questions depends on whichever employee happens to be managing the file that day, then you do not really have a process yet.
• 14:44
  SPEAKER_00: And that is exactly the kind of stuff that we spend a lot of time building inside of our free results-driven REI community.
• 14:51
  SPEAKER_00: Josh and I go live every week and teach investors how to take the things they are carrying around in their head and turn them into actual systems their team can follow, from getting the deal under contract all the way through closing.
• 15:04
  SPEAKER_00: The goal is not just more sign contracts, it is building a business that can consistently close those contracts without you personally managing every step.
• 15:13
  SPEAKER_00: The community is completely free, guys.
• 15:15
  SPEAKER_00: The link is in the description.
• 15:16
  SPEAKER_00: I'll see you inside.
• 15:19
  SPEAKER_00: This episode has come to an end, but your journey continues.
• 15:23
  SPEAKER_00: Subscribe to the podcast so you never miss an episode.
• 15:26
  SPEAKER_00: If you want direct help from us, join our free community by visiting the results driven podcast.com.
• 15:32
  SPEAKER_00: That's the results driven podcast.
• 15:38
  SPEAKER_00: We'll see you next time on the Results Driven Podcast.